The Euro has experienced a decline against the Japanese Yen for the second consecutive day, influenced by political uncertainty in France. This uncertainty stems from the decrease in presidential approvals ahead of the General Elections, reaching a five-year low. The EUR/JPY is currently trading at 168.43, reflecting a 0.08% decrease.
Technical analysis of the EUR/JPY price indicates that there is a consolidation phase below the 170.00 mark. However, the currency pair remains above the Ichimoku Cloud (Kumo), which could lead to a further downtrend if this level is breached. The Relative Strength Index (RSI) shows that sellers are gaining momentum as it drops below the 50-line, suggesting the potential for more losses.
If the EUR/JPY falls below the 50-day moving average (DMA) at 167.47, it could trigger a decline towards the Kumo bottom at 165.92. Subsequently, the 100-DMA at 164.78 would serve as the next support level. Breaking below these levels could accelerate the downtrend of the currency pair.
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